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Bring Out the Steamrollers - It's Election Year Again!

Jonas Klarin

FinanzArchiv: Public Finance Analysis, 2020, vol. 76, issue 1, 29-56

Abstract: I test for the presence of election cycles within the budget composition in Swedish municipalities. I find that local governments increase expenditures that are visible to voters in election years. Other expenditures do not decrease, and as a consequence total spending increases. Budget balance is achieved by an increase in intergovernmental grants. I also find suggestive evidence that municipalities with the same political affiliation as the ruling central government receive more grants and spend more on visible expenditures.

Keywords: political budget cycles; expenditure composition; visible spending; intergovernmental grants; local governments (search for similar items in EconPapers)
JEL-codes: D72 H72 H77 P16 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:mhr:finarc:urn:doi:10.1628/fa-2019-0012

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DOI: 10.1628/fa-2019-0012

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